Speech

V NATIONAL DEMISE ADVISORY COMMISSION ° Gc ' % NOT TO BE RELEASED v- . . \ j teQRB 7:15 p.m. E.S.T. K Wa u A j u) \ V^Gctober 17, I9U0 ^.J 0 ^fcj • Radio Address by Chester Davis, Commissioner in charge of the Agricultural Division of the National Defense Advisory Commission, delivered over the network of the Mutual Broadcasting System from Station WOL, Washington, D, C., October 17, I9U0, from 7:15 to 7:30 p,m,, E.S.T. lesterday 16 million young men of America registered under the Selective Service Act to make themselves available for the defense of our n ation, The National Defense Advisory Commission since its creation four an( l a half months ago has "been working with the military and naval and °ther government establishments to organize our material resources for Production to equip these new defense forces. The Congress has appro- priated 15 billion dollars for defense. Two-thirds of that sum, or 12 Million dollars, v/ill go for new weapons and the added plants and ies necessary to produce them in volume. Eight of those 12 Million dollars have already been cleared for that purpose, and new con- tacts are being awarded each day as our industries organize to meet the Ur gent demand. Events, utterly unpredictable and incredible a year ago, We etched such a pattern over the rest of the world that one hundred r ^id thirty million people are joined in demanding total preparedness for the United States. The object is insurance of our shores against aggression, •r confident that the production facilities of this nation arc adequate to the challenge and that our sons who are called into the service will Well equipped to defend this nation if that necessity should come. Each member of the Defense Commission of seven has a (Jual responsi- bility - that shared with the others for the policies and acts of the Com- ^ssion as a whole, and that attached directly to the division he heads, ^ direct responsibility at the Defense Commission is in the field of agri- u °lture. Before considering it, I wish to express my confidence in the PR 177 - 2 - re &l accomplishments that have "been recorded "by our military establish- ments i unspectacular but fundamental task of organizing our industry n the speedy production of the materials of defense. The job of turning new supplies now rests with American industry to whom the responsibility be en entrusted. It is my observation that industry has assumed thi 18 responsibility with high patriotism and with a realisation that only thr 0-u -gh total preparedness can we be certain that our free institutions be preserved. The job for agriculture is no different from that of any other er ^ ican group. The primary duty of every element in our economic r &anization its resources and manpower available for defense. objective must never be obscured and in my judgment it has the un- ^tional L es. Wes uaplplo rtr emofe mbAemre ritchaant ifna r1m9e1r7s•, agriculture was called upon to in 0I, fortunately this crisis found farmers prepared with abundant sase its production to feed our army and those of our allies. "Food ^.n the War", was the slogan of that day. Now we find domestic food ^Plies adequate to take care of our own military and civilian require- ments v 'ith plenty left over. After providing for our own needs, the Vt 6(1 States could export 150 million bushels of wheat, U00 million She ls of corn, 100 million bushels of barley, 350 million pounds of • ->00 million pounds of lard, 250 million pounds of other edible fats ] ar ge quantities of fresh, dried and canned fruits and vegetables. u, „ c °tton storehouse is full and running over. These surpluses are w carried over from previous crops. Present crop prospects indicate PR 177 - 3 - tilat aggregate farm production for 19UO promises to be the second largest n ° record. It is apparent, therefore, that the supplies of American farm ?r °'iucts are sufficient to meet any demands that may "be anticipated. *he e ssentia.l task is to maintain the farm nlant in such a healthy, 0( ^ iuctive condition that supplies of foods and other farm essentials Vfil] - continue to be sufficient. It is obvious that no nation can adequately defend itself without Aidant supplies of food and fiber. It is equally obvious that those spiles cannot be maintained unless the producers are kept in the position to c °ntinue efficient production. The objective of increased farm income stable prices has long been recognized, national policy. We must not r ®at from the peace time objective of balanced farm production, prices ^ income now that war clouds cover the sky. From the standpoint of organisation, American agriculture is er prepared than most groups to meet whatever the future may hold. ls is due to the national farm program of recent years in which the Majority of farmers have participated. The Agricultural Division Of th * ae defense Commission is fortunate in having available tiie resources f facilities of the Department of Agriculture. In every project Vh 1 Vr Q have undertaken there has been close and active collaboration the Department of Agriculture which is charged with the Administra- tis * the action programs. - PR 177 The Agricultural Division and the Department of Agriculture are giving constant attention to agricultural prices and price relationships, At the present tine farm prices, in general, are low. It is my opinion ^at a substantial increase in most of then is desirable. Such an in- crease, where it is simply a recovery from abnormally low levels, must u °t be considered as either a justification or a cause of spiral price advances in other areas* During the past four months, the Agricultural Division of the ^°fonse Commission has boon conccrnod with a number of immediate problems determining how the resources of agriculture could be best made avail- afclo for defense. Foremost among those considerations is the location of plants which arc being built to provide the Army and Navy with Munitions and other supplies. Sound policy requires that, insofar as £°ssiblo, the new defense plants be built away from regions of present ^dustrial concentration and in locations where there is not only an Equate labor supply for the defense emergency but where the people will be entirely separated from their former livelihood. These individuals Car i use some of the income received from employment in now powder plants r ° munitions factories to improve their homes and farms. It will com- &°ttoato in part for adjustments they are forced to make because of cur- ^ilocl export outlets for farm products. War, and the rising effort for national self-sufficiency that decoded it, have greatly diminished export outlets for many important °rop — cotton, tobacco and wheat particularly. Many markets have been s n °Hrely eliminated. Any steps which can bo taken, consistent with the ob- ^°ctives of national defense, to pave the way for industrial employment in ^Oas where those crops are grown is clearly in the public interest. PR 1 - 5 - T7 To illustrate this point, lot no toll you the story of one of tho first plants located in accordance with this general pattern. This plant at ^adford, Virginia, will nanufacturo smokeless powder and will employ sone five thousand workers. Radford is well inland from the coast and outside the boundaries of any established industrial area. The counties surrounding Radford are densely populated. Many of the farms are small and the averago incone is low. The cash income of a large proportion of the farms is from $300 to $500 a year® Every reasonable effort is being made to facilitate tho employment of people who live on these farms in the vicinity of Radford, ^his is desirable because the local farm people need the extra income; the ^mediate housing problem will be alleviated, and there will be fewer stranded P°cple if and when the new plant shuts down. Not all of the plants which are going up have been located as ^vorably in relation to unemployed labor, including rural labor, as the ^okeloss powder plant at Radford. In some cases it has been necessary to °stablish a now plant near an existing factory where management, engineering ta lont and some highly skilled workers are available. This is particularly tfuo of many of the new aircraft plants. In other cases it is necessary to *°c«ato near the source of raw materials. Efficiency requires tho location of TUT plants, for example, near steel mills in order that the partially used acid is not wasted. Wherever possible, however, the defense commission is recommending tla at the policy of decentralization be followed. Plans are under way, for 02c ample, for the location of a group of plants west of the Mississippi t)l.v cr and it is my hope that an increasing proportion will be established - 6 - PR 177 there and in tne South and Southwest. In spite of the present concentration of aircraft plants along the Coast, new manufacturing units are being es tablihed in Texas and Kansas. And it is probable that before this country s Se cures all tne capacity it needs for making airplanes, additional.plants will established in the interior. In addition to tne Radford, Virginia, plant, construction of another smokeless powder plant is under way at Charlestown, Indiana. A large and shell and bomb loading plant will be located in a rural area some m iles south of Chicago. Preliminary v/ork will be done within the next £ w d-ays for tne establishment of another TNT plant located in Missouri. s plant will provide raw materials for a large bomb loading plant which s Planned for the vicinity of Burlington, Iowa. are also concerned witr the probable peace time value of so^ie of plants. For example, one of the ma.jor raw materials is nitrogen- °Sen in the form of ammonia. Nitrogen is also the most important plant Purchased by the farmer. As a part of the defense program, it is bs ary to construct some new plants for the manufacture of ammonia. I °peful that one of these, in line with the policy declared by Congress, e ° authorized for the T.V.A. where after the war need has passed, it nix, °e dedicated to the permanent peace time service of agriculture, ^roong other matters with which the Agricultural Division has been r fted, one example of genuine cooperation by the wool producers may bo O „ f 4i n1t erest. The tremendous wool requirements of the military services H t necessary to acquire a strategic reserve. The British Government a £reed to store in bond in this country 250 million pounds of Australian These stocks will be used only in an emergency when tnere is a shortage me stic wool or normal imports are shut off. During the development of - 7 - 177 tais plan the Defense Commission was in constant touch with representatives wool growers. While they were naturally concerned with the possible adverse effect of this plan upon their industry, they were also concerned with how "best to serve the program of national defense. Their suggestions were valuable ari(i a plan emerged which v/ill meet the requirements of national defense and at the same time protect the essential interests of civilian consumers and tn e * growers. One problem which we did not fully anticipate has to do with farmers, tenants and owners, whose land is purchased for defense projects. In 6r! nany, I advised, the Hitler government had very good reason to worry am the loss of agricultural land taken over for military uses. Fortunately, Ve hav e plenty of land here but it is a serious problem in some cases to opportunities for producers whose farms have been purchased for defense We are undertaking to develop a procedure that will give them 0r ity of employment in defense industries. In addition, we are working with th e ^arm Security Administration and other services in the Department of S ic Ulture at the task of rolocating those who desire t6 continue-farming h ^tions. % time is about up. I can only mention a few of the other activities Of th ne Agricultural Division. We are engaged in a nationwide survey of food u ^stri^ to develop plans for whatever direction or control an extreme s Sency might require. We are concerned in the training programs for youth t 0 m certain that unemployed rural boys have equal opportunity with other "PS to be trained in defense industries. We are cooperating with other ^ ©s on problems of economic collaboration in this hemisphere. We are ML. - 8 - PR 177 giving attention to foreign trade possibilities wnich involve farm commodities. These, and other projects which affect American Farmers occupy our continuing attention. . But above all considerations, is the immediate °bjective of organizing our abundant resources to keeiD war from these s hores. I repeat, American Agriculture is already producing in abundance v hat the nation requires from it. Bat beyond that, if sacrifices are ^lled for, I am confident that American farmers are ready to make their contribution for the maintenance of liberty and the ideals of free men.

Chester C. Davis (1940, October 16). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_19401017_davis

@misc{wtfs_speech_19401017_davis,
  author = {Chester C. Davis},
  title = {Speech},
  year = {1940},
  month = {Oct},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/speech_19401017_davis},
  note = {Retrieved via When the Fed Speaks corpus}
}